Which type of lien is specifically cited as a risk by Loan Policy Covered Risk No. 11(b)?

The correct answer identifies assessments for street improvements as the type of lien specifically cited as a risk under Loan Policy Covered Risk No. 11(b). This provision in title insurance policies is designed to protect lenders from certain types of risks associated with the property in question. Street improvement assessments can pose a significant risk because they often result in property owners being required to pay for public improvements that directly enhance the value or functionality of the neighborhood. If these assessments are not disclosed or properly managed, they can lead to unexpected financial obligations for the property owner or lender, jeopardizing the security interest in the property.

In contrast, while judgment creditor liens, mortgages, and condo assessments can also represent risks, they do not fall under the specific language of Covered Risk No. 11(b). Judgment creditor liens relate to past due obligations owed by the borrower but are treated differently than municipal assessments for infrastructure improvements. Mortgages assumed by the title holder might indicate a financial obligation to a lender, but they are not directly linked to public assessments. Condo assessments are specific to condominium developments and do not encompass the broader range of street improvements that can affect various properties within a municipality. Understanding these distinctions is crucial for those involved in title insurance to properly assess the potential risks associated with property titles.